New EU guidance helps companies to combat forced labour in supply chains
The guide provides practical advice on identifying, preventing, mitigating, and addressing forced labour’s risk and translating international standards into concrete action. The guidance is in line with the previously published EU trade strategy and upcoming legislation on Sustainable Corporate Governance.
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OVERVIEW
The guide aims to support EU companies in their efforts to eradicate forced labour from their value chains by providing concrete and practical advice on how to identify, prevent, mitigate, and address risk.
The guide focuses on addressing the significant ESG issues of forced labour in EU supply chains. Forced labour is a severe violation of human rights and a leading cause of poverty and an obstacle to economic development.
The guidance recommends EU companies implement the necessary measures to eliminate the risk of forced labour from their value chains. This includes a mandatory due diligence duty requiring companies to identify, prevent, mitigate, and account for sustainability impacts in their operations and supply chains.
EU trade agreements include binding commitments that prescribe ratifying and effectively implementing all fundamental ILO Conventions, including those on forced labour, with an obligation to suppress the use of forced or compulsory labour in all its forms. This commitment extends to the countries benefitting from the special incentive arrangement for sustainable development and good governance (GSP+).
The guidance recommends companies take the necessary measures to ensure their activities do not contribute to forced labour practices in any sector, region, or country, as part of the broader work to defend human rights.
In conclusion, EU companies are advised to take measures to ensure that no forced labour practices find a place in their value chains. The guidance recommends that steps be taken to prioritise responsible business conduct and human rights in operations and supply chains, and the effective implementation of international standards.
